Amer Sports Corporation Issues Interim Report January-March 2018
Amer Sports Corporation Interim Report January-March 2018
JANUARY-MARCH 2018
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EBIT increased to EUR 40.4 million (January-March 2017: 35.5, excluding items affecting comparability, IAC). EBIT margin was 6.5% (5.3 excl. IAC).
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Net sales in local currencies increased by 1% to EUR 623.8 million (664.2). Translation impact was significant due to the strengthening of the euro.
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Gross margin was 46.8% (44.7), driven by improvement in channel mix and higher share of full-price sales.
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Earnings per share were EUR 0.21 (0.19 excl. IAC).
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Free cash flow after investing activities was EUR 22.7 million (53.9).
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Outlook for 2018 unchanged.
OUTLOOK FOR 2018
In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. The company will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer-led transformation.
HEIKKI TAKALA, PRESIDENT AND CEO:
"In the first quarter, we delivered solid progress across our strategic transformation areas with on-going acceleration in Direct to Consumer, modern sales channels, and China. Following a year of significant transformation and restructuring, our focus in the quarter was on solidifying our margins through more attractive mix, higher quality distribution through sharper segmentation and reduced number of doors, and reduction of promotional sales especially in Footwear. As result, our margins and profit improved, and we can now focus on driving a more sustainable topline with a good pipeline of initiatives.
"The market continues to evolve rapidly, and we are embracing the changes proactively and with encouraging results. Whilst we make good progress and continue to accelerate in most areas, we also have more work to do to address the remaining areas of underperformance. As always, we maintain a long-term view guided by our sustainable growth model."
KEY FIGURES
| EUR million | 1-3/2018 | 1-3/2017, restated | 2017, restated | |
| Net sales | 623.8 | 664.2 | 2,709.3 | |
| Gross profit | 291.9 | 296.9 | 1,206.4 | |
| Gross profit % | 46.8 | 44.7 | 44.5 | |
| EBITDA excl. IAC*) | 58.0 | 54.7 | 283.9 | |
| EBIT excl. IAC | 40.4 | 35.5 | 214.5 | |
| EBIT % excl. IAC | 6.5 | 5.3 | 7.9 | |
| IAC**) | – | -6.7 | -46.7 | |
| EBIT | 40.4 | 28.8 | 167.8 | |
| EBIT % | 6.5 | 4.3 | 6.2 | |
| Financing income and expenses | -7.4 | -5.2 | -26.3 | |
| Earnings before taxes | 33.0 | 23.6 | 141.5 | |
| Net result | 24.6 | 17.5 | 92.9 | |
| Earnings per share excl. IAC, EUR | 0.21 | 0.19 | 1.18 | |
| Free cash flow***) | 22.7 | 53.9 | 161.3 | |
| Equity ratio, % at period end | 35.0 | 36.7 | 34.0 | |
| Net debt/equity at period end | 0.62 | 0.61 | 0.52 | |
| Personnel at period end | 8,650 | 8,617 | 8,607 | |
| Average rates used, EUR/USD | 1.23 | 1.06 | 1.13 | |
*) EBITDA excl. IAC = EBIT excluding items affecting comparability and depreciation and amortization
**) Items affecting comparability are material items or transactions, which are relevant for understanding the financial performance of Amer Sports when comparing profit of the current period with previous periods. These items can include, but are not limited to, capital gains and losses, significant write-downs, provisions for planned restructuring and other items that are not related to normal business operations from Amer Sports’ management view. A single item affecting comparability has to represent more than one cent per share on annual basis.
***) Cash flow from operating activities – net capital expenditures – change in restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets).
